August 11, 2022

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Yuguda: Driving reforms house at SEC


As a vital part of the economic system, the capital market has an amazing position to play in its improvement. And that is what the Director Basic of the Securities and Change Fee (SEC) is presently doing to make the capital market the motive force of Nigeria’s economic system; BENJAMIN UMUTEME writes.

On July sixth 2020, when Lamido Yuguda assumed workplace because the Director Basic of the Safety and Change Fee (SEC), analysts noticed it as one other alternative to take the Fee to the subsequent stage contemplating the work, its former head; Mary Uduk did throughout her tenure as performing Director Basic.

A cursory evaluation of the actions of SEC Nigeria and its contributions to the nation’s GDP over the previous two years of the Covid-19 pandemic period and the latest Russia-Ukraine struggle confirmed that the Fee has surpassed analysts’ forecasts when it comes to funding inflows and different regulatory efficiency indices.

Latest actions of the funding market regulatory fee beneath the Yuguda-led government administration exhibits clearly that quite than bemoaning the inclement financial local weather within the nation, the SEC administration has not solely set strategic objectives but in addition continued, by means of modern regulatory pointers and collaboration with different related establishments, to increase the frontiers of the funding house with the attendant implications for improved native and FDIs into the economic system. The information converse on this.

As an illustration, on market-wide points, the Fee has drafted and introduced an modification to the ISA and the Invoice to the Nationwide Meeting as a part of its efforts to reinforce the regulatory framework of the Nigerian capital market. The Invoice will quickly be handed and enacted into legislation.

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Capital Market Grasp Plan as reform pivot

Decided to place the capital market as the motive force of the economic system, the SEC Director Basic promptly went to work on the Capital Market Grasp Plan (2015-2025). The target of the Grasp Plan is to map out methods for the development of the Nigerian capital market in key areas comparable to investor safety and schooling, professionalism, and product innovation, and for the enlargement of the capital market’s position within the economic system.

The SEC DG, not eager to jettison the plans set out along with his administration workforce efficiently reviewed the CCMP to realign the initiatives/deliverables to prevailing market situations and hold the doc related within the dynamic capital market attributable to points associated to Fintech, sustainability and regional integration.

Company governance

SEC beneath the management of Yuguda launched pointers on the Implementation of Sections 60-63 of the Investments and Securities Act (ISA), 2007. On the similar time, the Fee not solely developed the SEC Company Governance Pointers (SCGG) but in addition harmonise the reporting timeline of the SEC Company Governance Guideline (SCGG) with that of the Nationwide Code of Company Governance (NCCG), it additionally in yr 2021 uncovered to the general public for feedback an modification to Guidelines 42(2).

The Fee has additionally as a part of its regulatory interventions to amicably resolve disputes between the board and shareholders of listed corporations resolved the disputes between Alhaji Muneer Alade Bankole (the Chief Government Officer) and Sheikh Abdulmohsen A. Al-Thunayan (Chairman of the Board) of Medview Airways, resolved these between main shareholders of Ikeja Accommodations Plc and returned the corporate to profitability and in addition reached a settlement with Oando Plc in 2021 after concluding investigation of Company Governance allegations leveled in opposition to the corporate.

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Cash laundering/ terrorism financing

On the controversial problem of Anti-Cash Laundering/Combating the Financing Of Terrorism (AML/CFT), following the GIABA Mutual Analysis of Nigeria, the Yuguda-led government administration made concerted efforts within the capital market to fulfill each the GIABA Mutual Analysis Report(MER) Observe-Up Course of and the FATF Worldwide Cooperation Evaluation Group (ICRG) necessities with the intention to keep away from Nigeria being positioned on the FATF public gray record on the Plenary when the grace interval expires in October, 2022.

Ponzi scheme

In furtherance of its regulatory mandate, the Fee carried out investigations into complaints by buyers and out of the 250 complaints introduced ahead into the interval, 182 had been resolved. Additionally, out of the 58 complaints in relation to Ponzi schemes acquired, 45 had been resolved. The Fee get well 10,659,168 models of assorted corporations’

shares in addition to the sum of N1,384,255,526.73 recovered for buyers in the course of the interval beneath evaluate, sealing up the premises of 4 unlawful operators and initiating the prosecution of their promoters.

The great work Yuguda is doing on the SEC has not gone unnoticed, thus incomes him the management of the West African Securities Regulators Affiliation (WASRA).

As Yuguda continues to soldier on despite the put up Covid-19 challenges each globally and on the house entrance, financial watchers say, Nigeria’s capital market can be higher positioned to compete with its friends globally.